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99''1�562� LOAN #: 8196076
<br /> TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and
<br /> fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument.
<br /> All of the foregoing is referred to in this Security Instrument as the "Property."
<br /> BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and
<br /> convey the Property and that the Property is unencumbered, except for encumbrances of record.Borrower warrants and will defend
<br /> generally the title to the Property against all claims and demands, subject to any encumbrances of record.
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited
<br /> vaziations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Bonower sha11 promptly pay when due the
<br /> principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br /> 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to
<br /> Lender on the day monthly payments aze due under the Note,until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes
<br /> and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or
<br /> ground rents on the Property, if any; (c) yeazly hazard or property insurance premiums; (d) yearly flood insurance premiums, if
<br /> any; (e) yearly mortgage insurance premiums, if any; and (� any sums payable by Borrower to Lender, in accordance with the
<br /> provisions of pazagraph 8,in lieu of the payment of mortgage insurance premiums. T'hese items are called "Escrow Items." Lender
<br /> may,at any time,collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage
<br /> loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from
<br /> time to time, 12 U.S.C.Section 2601 et seq. ("RESPA"),unless another law that applies to the Funds sets a lesser amount. If so,
<br /> Lender may, at any time,collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of
<br /> Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance
<br /> with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including
<br /> Lender,if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items.
<br /> Lender may not charge Bonower for holding and applying the Funds, annually analyzing the escrow account, or verifying the
<br /> Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge.
<br /> However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by
<br /> Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law
<br /> requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and
<br /> Lender may agree in writing,however, that interest sha11 be paid on the Funds. Lender shall give to Bonower, without charge, an
<br /> annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was
<br /> made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts pernutted to be held by applicable law,Lender shall account to Bonower for
<br /> the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is
<br /> not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay
<br /> to Lender the amount necessary to make up the deficiency. Bonower shall make up the deficiency in no more than twelve monthly
<br /> payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds
<br /> heTd by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the
<br /> Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this
<br /> Security Instrument.
<br /> 3.Application of Payments. Unless applicable law provides otherwise,all payments received by Lender under paragraphs 1
<br /> and 2 shall be applied: first,to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third,
<br /> to interest due; fourth,to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower sha11 pay all taxes, assessments, charges, fines and impositions attributable to the Property
<br /> which may attain priority over this Security Instn�ment, and leasehold payments or ground rents, if any. Borrower shall pay these
<br /> obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the
<br /> person owed payment. Borrower sha11 promptly furnish to Lender all notices of amounts to be paid under this paragraph. If
<br /> Borrower makes these payments directly, Bonower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
<br /> writing to the payment of the obligation secured by the lien in a manner acceptable to Lender;(b) contests in good faith the lien by,
<br /> or defends against enforcement of the lien in,legal proceedings which in the Lender's opuuon operate to prevent the enforcement
<br /> of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security
<br /> Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security
<br /> Instrument, Lender may give Borrower a notice identifying the lien. Bonower shall satisfy the lien or take one or more of the
<br /> actions set forth above within 10 days of the giving of notice.
<br /> 5.Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br /> insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br /> requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not
<br /> be unreasonably withheld. If Bonower fails to maintain coverage described above, Lender may, at Lender's option, obtain
<br /> coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall
<br /> have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br /> premiums and renewal notices. In the event of loss,Borrower shall give prompt notice to the insurance carrier and Lender. Lender
<br /> may make proof of loss if not made prompfly by Borrower.
<br /> Initisl3:
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